civilservant

I own diversified international ETFs, but I wouldn't want all my international investments in the UK right now with. Mine is pretty much invested across all international markets.

Hotscot

Simplify Your Investments with the 3-Fund Portfolio

https://twocents.lifehacker.com/simp...lio-1831746735

bandor

Hi all,

I'm a British citizen moving to the US mid-Feb 2019 (in about 4 weeks!), mainly because I want to go live with my wife (Indian citizen paying US taxes under "married but filing separately").

In the UK, I currently have:

• About £25,000 in a Barclays savings account, which is earning some tiny interest rate
• A pension (Royal London) currently worth roughly £9,000
• Some minor crowdfunding investments for UK/EU businesses not worth more than £1,000

Other than these, I have never invested in anything else in the UK (no ISA or mutual funds or anything like that).

I do not intend to return to the UK, unless some major life event occurs. So it is most likely that I will be a US resident for tax purposes for the rest of my life.

A little more background (in case it matters): I lived and worked in the US (on a visa) for about 11 years in the past, and I have a significant US stock portfolio (US broker), as well as US bank account. However, I never had a US IRA account.

Now, my original plan was to move all my GBP in Barclays savings account into some form of medium-risk investment here in the UK (stocks and shares ISAs, for example). I do not currently need to transfer any money to US, as I have plenty there already (and a wife to support me if needed). I wanted to put the money into some sort of investment here so that I don't see the same bank balance if I return to the UK 10-20 years from now.

However, after reading this thread, it sounds like I will be in IRS forms hell for the rest of my life if I do this!

Is my best course of action to accept the poor exchange rate and transfer money in 2/3 lumps over to my US bank account?

Any advice would be much appreciated... cheers!

Hotscot

Keep, a good bit under, $10,000 in a UK account for handiness if you might visit. Avoid FBAR reporting.

But yes, my opinion, take the balance and transfer it here to avoid 'forms hell'.
Before you become a US tax resident.
(It's not that bad really but worth having one less thing to be concerned about. The risk of serious penalties is overstated.)

Leave the pension where it is. Collect when ready.

Plenty of good investment vehicles here via Vanguard/Fidelity etc. Get it working for you.

(If you have any earned income in the U.S. start a Roth IRA and max a 401K, if applicable.)

bandor

Thanks very much for your response, Hotscot.

Question about FBAR: Since I've already got over $10,000 in my Barclays accounts over 2018 and 2019, I assume that I have to file FBAR both this year and next year, even if I move all the money out gradually over 2019 so that I have less than $10k in Barclays? Wife wants to file US tax returns jointly this year (although, I am not sure that's possible as I have not been a US resident in 2018).

Thanks!

Hotscot

My opinion.

If not a tax resident in 2018 you are invisible/irrelevant to the IRS.
If not a tax resident in 2018 no need to file FBAR in this years tax return.
If you've not been a tax resident in 2018 then don't file jointly. No point. Keep it simple.
If you've not been a tax resident in 2018 then you don't need to be mentioned. Keep it simple.
If you've had $10,000 any time during 2019 then FBAR will need to be filed next year when you do taxes in 2020.

I am not a tax professional.

theOAP

Were you a US tax resident when you were in the US before? If so, when you left the US, did you file a form 8854? If not, and the 11 years were continuous, you may have been a US tax resident since your departure, and you may continue to be a US tax resident now with all that entails (annual filing and FBARs). Be sure you have evaluated this since you are returning to the US tax system.

https://www.taxesforexpats.com/artic...atriating.html

Hotscot

Good point.
What visa were you on previously?
Were you a permanent resident?
I assume yes for 11 years?

bandor

Oh wow, I never even heard about this 8854 form!

Last time I filed US tax return was in 2010 (while I was in the UK, since I had US income in Jan-Feb 2009).

I was never on a green card (F1 visa/status 1998-2002 -> OPT status 2002-2003 -> H1B status 2003-2009 -> left US in 2009).

Based on that link, it sounds like it only applies to permanent residents who lived in the US for 8 years?

This time I'm moving to US on H4 status and will be doing AoS for permanent residence.

Thanks!

Hotscot

So you were not on an immigrant visa at any time.
I think you're ok then.